BEIJING/PARIS: Chicago corn and wheat futures edged down on Wednesday while soybeans inched up as a rising dollar curbed US prices and traders assessed rain chances in dry Argentina crop belts.
Trading was cautious amid uncertainty over President-elect Donald Trump’s tariff plans. Traders also awaited US government crop data on Friday for further direction on grain supply and demand.
The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.1% at $4.57-1/2 a bushel by 1231 GMT.
CBOT soybeans were up 0.2% at $9.99 a bushel, while CBOT wheat contract eased 0.5% to $5.39-3/4 a bushel.
The dollar index rose for a second day to approach last week’s two-year peak.
“The strength of yesterday’s US economic data releases combined with the looming threat of Trump’s tariffs reverberated through the Asian trading session this morning,” Rabobank said in a note.
A higher dollar makes US grain more expensive overseas and the currency’s strength has underscored concerns about tepid export demand for US grain.
Weather for developing corn and soy crops in South America remained in focus, with participants monitoring forecasts suggesting some rain and easing heat in Argentina next week.
“From a fundamental point of view, there is an expectation of rainfall in Argentina, which will help crops which have been parched after a particularly poor December in terms of rainfall,” said Andrew Whitelaw at agricultural consultants Episode 3 in Canberra.
Source: Brecorder
